That obviously not for a house under a mortgage. This is one of those things that escrow is for.

Not everyone escrows though. (I agree that they should however.)

In the meantime, here’s the subprime meltdown explained for those in the mood for some gallows humor:

The Subprime Primer

Yes, and if Obama has his way, we’ll all be screwed big time.

I rent. I don’t get a homestead exemption on property taxes. I don’t get to write of interest on mortgage. I pay full bill. And now The One wants me to help pay for someone else’s bill?

No. No. 1000 times no.

In a different post, you stated this:

No government involved, other than the county who wants two years worth of back taxes paid in full

That obviously not for a house under a mortgage. This is one of those things that escrow is for.

Don’t PANIC (The Hitchhiker’s Guide To The Universe…Douglas Adams)

At least not until we’ve reached the Shoe Event Horizon anyway… ;-)

Greenspan was doing his job setting the stage for Globalism. That job is ongoing, regardless of party or president. We are all expendable pawns. Value is determined by the global elitist power mongers.

Our only defense is the preservation of our Constitution. Hence the pugilist who heeds the warning: be as wary as a fox, as wise as a serpent. Protect the lamb, our children.

maverick muse on February 20, 2009 at 11:07 AM

Pat? Pat Buchanan, is that you? I suppose Greenspan did this because he’s a.. well you know, I don’t have to say the word.

Our only defense is the preservation of our Constitution. Hence the pugilist who heeds the warning: be as wary as a fox, as wise as a serpent. Protect the lamb, our children.

there are plenty of people who are being screwed big time as the housing market tanks.

And those of us who saw it coming and wisely chose to wait have to pay for everyone else, why? I don’t think I should subsidize your bad decision, the information was out there and if you chose not to pay attention that’s your problem not mine. No one held a gun to people’s heads and forced them to buy a house. And people buying low income houses DOES cause all housing prices to rise as the general supply goes down, just as lowering the interest rates as they have been doing drives investment towards real estate whether market forces where headed that way or not. The government has it’s fingerprints all over this crises.

starfleet_dude on February 20, 2009 at 10:56 AM

Don’t PANIC (The Hitchhiker’s Guide To The Universe…Douglas Adams)

“The segment couldn’t more clearly illustrate the disconnect between the financial-services sector, certain financial journalists, and, you know, ‘reality.’–Allahpundit

Realism is Surrealism according to socialism.

progressoverpeace on February 20, 2009 at 10:50 AM

Ha…thanks. You’ve inspired me.

genso on February 20, 2009 at 10:44 AM

Well put, and a great analogy. It will be lost on space_cadet, but can do some real good with others perusing these comments.

starfleet_dude on February 20, 2009 at 10:36 AM

Look, dude…if you don’t have to sell then you are in good shape and your property will revalue over time. But, you can’t panic and insist that home values should be artificially propped up so that you don’t have to worry. What you seem to be advocating is something that will have the same effect as if you threw water on an electrical fire. Be patient, be thankful, and don’t be an advocate for ruin by trying to do something that is more harmful than the original problem.

starfleet_dude on February 20, 2009 at 10:36 AM

You know, I try and actually explain how things work to you, but you seem to be beyond help.

dedalus, if someone buys a home they can’t really afford what happens is that they have to skimp on necessary upkeep. It would be better for the government to get rid of the mortgage interest deduction as it artificially props up home prices.

starfleet_dude on February 20, 2009 at 10:27 AM

Or in an environment where houses are seen as investment vehicles rather than places you want to live for 10+ years. If someone is getting an adjustable mortgage because they expect to flip the house in a year, it doesn’t do much for the community.

progressoverpeace, as I said earlier, if any adjustment downwards of the original loan is made in hopes of keeping someone in a house (and to be frank, there are some cases where it’s not a bad thing) I’m in favor of both the borrower and lender taking a share of the pain and for giving back any future gain should home prices improve.

dedalus, if someone buys a home they can’t really afford what happens is that they have to skimp on necessary upkeep. It would be better for the government to get rid of the mortgage interest deduction as it artificially props up home prices.

starfleet_dude on February 20, 2009 at 10:27 AM

Subsidizing leverage with the deduction may have been a bad idea, but it did much to create personal wealth in the country for the past 60 years. Few people can pay cash for a house, so they borrow 80% of the price and then benefit 5-to-1 when the price goes up.

It worked great for generations, but as bank execs have recently “discovered” leverage is nice when prices go up but can kill you quickly when they fall.

That said, my point about lower appraisals still stands, since an existing mortgage-holder doesn’t benefit from a sudden drop in home value relative to the amount owed on the loan.

starfleet_dude on February 20, 2009 at 10:23 AM

You are assuming that buying a house is a guaranteed investment. Markets, including housing markets go up and down. If you’re caught on a down market and you haven’t been prudent in buying it and allocating your other assets, TOO DAMN BAD. Life it like that and the government has no right to guarantee against failure.

That said, my point about lower appraisals still stands, since an existing mortgage-holder doesn’t benefit from a sudden drop in home value relative to the amount owed on the loan.

starfleet_dude on February 20, 2009 at 10:23 AM

When they start adjusting the principal of the loan he certainly will.

Really? You sure about that?

Yep. It wasn’t lending to minorities buying cheap homes that got the economy into a mess, it was lenders & investors who thought that housing values could only go up, up, up!

BTW- some people do not deserve to own homes-EVER.
It is not the govt’s job to put a chicken in every pot or provide a home for every family.

Badger40 on February 20, 2009 at 10:17 AM

The belief has been that home ownership increases the stability of neighborhoods. My property is more likely to increase in value if the other people on the street care for their property and have a stake in the town. The mortgage interest deduction is one way the government has encouraged home ownership for decades.

Subsidizing interest payments probably isn’t the best way to subsidize home ownership, but it is the biggest tax deduction most people get and is based on the government’s belief that it is better to have owners than renters.

That said, my point about lower appraisals still stands, since an existing mortgage-holder doesn’t benefit from a sudden drop in home value relative to the amount owed on the loan.

genso on February 20, 2009 at 10:16 AM

Heh. I have to thank my straight-man, space_cadet, for his great help. There are times when liberals can really be accomodating, if unintentionally.